Retail News CRM

Tag: Doota Duty Free

  • Lotte Duty Free sales up 25 per cent

    Lotte Duty Free sales up 25 per cent

    Lotte Duty Free has reported a 26 per cent increase in turnover to W5.9 trillion (US$5.1 billion) for last year.

    The figures are believed to excludes sales from its overseas airport and downtown outlets (Guam, Indonesia, Tokyo), reports DFNI Online.

    For 2015, its sales reached W4.82 trillion, a decline from W4.55 trillion the previous year.

    The Mers outbreak hit the retailer, despite it being awarded five-year contracts for two perfumes and cosmetics concessions and a liquor and tobacco concession at Seoul Incheon airport. It also beat off competition for a downtown duty-free shop in Jeju. The disease outbreak chopped off Chinese tourist arrivals to South Korea.

    Lotte Duty Free was further dented by the loss of its pivotal World Tower licence to travel retail newcomer Doosan Corporation (Doota Duty Free), but it has since regained the licence and re-opened the store.

    Marketing division manager Bo Joon Kim describes it as “one of the most chaotic times” in the group’s history.

    Lotte accounted for 48.7 per cent of total Korean duty-free sales last year, which amounted to W12.3 trillion. It started the year by opening its 4396 sqm Korean-style downtown duty-free store in Tokyo.

    Other developments included the reopening of its Gimpo airport store in August and the re-launch of its Gimhae airport outlets.

    Lees ook:

  • Korean duty-free stores suffer losses

    Korean duty-free stores suffer losses

    Korean duty-free stores newly opened in Seoul are losing money as heavy marketing costs erode profits.

    A review of financial documents from the major players show heavy competition is taking its toll on all players.

    Five duty-frees stores opened new shops in the capital city after winning licenses in two bids — one in July and the other in November 2015 — in hopes of courting deep-pocketed Chinese customers, but none of them has reached the break-even point since opening.

    Shinsegae Duty Free, which opened in mid-May, posted 121.2 billion won (US$103.8 million) in sales over the past four months, but it accumulated 37.2 billion won of operating losses, its regulatory briefing showed.

    Galleria Duty Free 63, a duty-free store run by Hanwha Galleria, said it booked 193.4 billion won of sales between December 28 and September 30, but the operating deficit reached 30.5 billion won over the period.

    HDC Shilla Duty Free, a joint venture between Shilla Hotel and Hyundai Development, said it posted 228.7 billion won and 16.7 billion won in sales and operating deficit, respectively, in the January-September period.

    SM Duty Free, a unit by leading tour agency Hana Tour, said it logged 71.1 billion won in sales and 20.8 billion in operating losses from its opening on February 15 to September 30.

    Doota Duty Free, a unit by power equipment and construction conglomerate Doosan Group, logged 10.4 billion won in sales and 16 billion won in operating losses in the first half of this year. It has not yet disclosed the third quarterly report.

    Business prospects remain grim for the fledgling operators as the government is set to give out four new operating licenses in Seoul as a way to promote tourism.

    The Korea Customs Service earlier said it will pick the winners next month, but it remains unclear as a snowballing influence-peddling scandal involving the business community has prompted investigation into the companies that donated funds to two sports foundations, involving those vying for duty-free shop licenses.